Ripple CTO David Schwartz has addressed concerns surrounding the company’s sales of XRP in the first quarter of 2024. The Q1 report revealed that Ripple sold a significant 841.5 million XRP during this period, resulting in a decrease in Ripple’s XRP holdings to 44.94 billion. This accounts for 44.94% of the coin’s maximum supply as of March 31, 2024.
It is worth noting that Ripple’s sales of XRP in Q1 2024 represented a 16% decrease from the previous quarter’s sales of 1.006 billion coins. Nevertheless, Ripple remains the largest seller of XRP.
Schwartz explained that Ripple is the largest seller of XRP simply because the company holds the most of it. He stated that since Ripple possesses a substantial amount of XRP, the only viable option, aside from selling it, is to continue holding the coins indefinitely.
Out of the 44.94 billion XRP held by Ripple as of March 31, 40.1 billion were stored in multiple escrow wallets. These wallets are programmed to release XRP in batches on the first day of each month. As of now, Ripple’s escrowed balance has decreased to 39.7 billion XRP due to the release of 400 million XRP into the company’s spendable account in April and May.
Ripple’s spendable balance was approximately 4.84 billion XRP as of March 31, 2024. It is important to note that Ripple typically conducts sales from this spendable account to cover legitimate business expenses.
Concerns have arisen over Ripple’s XRP sales, as the cryptocurrency has experienced a 13.4% decline year-to-date, with critics attributing this underperformance to Ripple’s continuous sales. Some have suggested that the company should burn all the XRP held in escrow to potentially trigger a significant price spike.
However, Schwartz is not convinced that burning the escrowed XRP coins would have a positive impact on the price. On the other hand, some enthusiasts speculate that the ongoing SEC lawsuit has contributed to XRP’s underperformance in recent years. The lawsuit, which played a significant role in preventing XRP from reaching a new all-time high during the 2021 bull cycle, is nearing its conclusion.
Prominent crypto stakeholders, including Schwartz, believe that a final resolution will be reached this year. Both parties have already submitted their final briefs in the remedies phase and are awaiting the final judgment.
Disclaimer: This article provides information and should not be considered as financial advice. The opinions expressed in this article are the author’s own and do not reflect the views of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.